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HomeMy WebLinkAboutDocumentation_Regular_Tab 7C_11/14/1996 VILLAGE OF TEQUESTA FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES OCTOBER 30, 1996 I . CALL TO ORDER AND ROLL CALL The Tequesta Finance and Administration Committee held a regularly scheduled meeting at the Village Hall, 357 Tequesta Drive, Tequesta, Florida, on Wednesday, October 30, 1996. The meeting was called to order at 8 : 37 A.M. by Chairman Joseph Capretta. A roll call was taken by Betty Laur, the Recording Secretary. In attendance were the following Committee members: Joseph Capretta, Mayor Ron T. Mackail, and Michael R. Meder. Also in attendance were Village Manager Thomas G. Bradford, Village Clerk Joann Manganiello and Department Heads. II . APPROVAL OF AGENDA Committeemember Mackail made a motion to approve the agenda as submitted. Committeemember Meder seconded the motion. The vote on the motion was: Joseph N. Capretta - for Ron T. Mackail - for Michael R. Meder - for The motion was therefore passed and adopted and the agenda was approved as submitted. III . COMMUNICATIONS FROM CITIZENS (NON-AGENDA ITEMS) There were no communications from citizens. f FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES OCTOBER 30, 1996 PAGE 2 • IV. REVIEW OF FINANCE OPTIONS FOR PURCHASE OF TWO (2) AMBULANCES A) REVIEW OF FIVE-YEAR ANALYSIS OF AMBULANCE TRANSPORT SERVICE B) REVIEW OF PROPOSED REVISION TO EMS BUDGET • C) REVIEW OF TEN-YEAR CAPITAL REPLACEMENT PROGRAM AND ASSOCIATED FINANCING OPTIONS Fire Chief Weinand reviewed the five-year analysis chart which covered FY 97/98 through FY 01/02 and listed the expenditures and revenues for each fiscal year. Chief Weinand explained that the chart was based on three assumptions: 1) Debt service payment would be determined from the variables (Option 3, $31, 989 assumed) ; 2) All equipment listed in the chart of Start-up Purchases to be Financed would be purchased in the lease purchasing contract; 3) $310 would be the fee per call and $6 per transport. Using these assumptions, the analysis showed a surplus of $160, 904 . 33 over the five-year period. A 5% increase on expenditures was included, and a 3% rise in call volume was assumed, although rates were not adjusted for the rise. Collections were assumed at 80%, and calculated using 80% of $310 fee per call. Chief Weinand explained that he had determined the rate by using the average base ALS rate which included oxygen fees. Medicare reimbursement was $284.53 for the area. Chairman Capretta commented that a very high collection rate would be realized from Medicare; however, they would only pay $284 rather than $310. The private pay calls were typically also high for this area. Under this proposal, Chief Weinand and his secretary would handle the electronic transmission of collections to Medicare. Chief Weinand explained that the decision had been made to handle collections in-house since past experience showed that the tracking time spent by staff when using an outside collection service would equal the time it would take for staff to perform the operation themselves. Chief Weinand FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES OCTOBER 30, 1996 - - PAGE 3 explained that the $310 fee had been determined by using the average ALS base rate and the $6 transport fee had been used by taking the average mileage charge. Chief Weinand explained that the representative for the billing software had wanted to assure that the fee was above the $284 .53 Medicare rate so that in Medicare' s analysis next year of the Palm Beach County area, those over the rate would receive the percentage by which lower rates were underfunded. The $310 rate would not affect anyone on Medicare since Medicare paid a maximum of $284 . 53. Chief Weinand explained that many departments had gone to a flat rate since ALS and BLS rates were now the same. • Mayor Mackail commented that in Chief Weinand's proposal 3% rise in call volume had been anticipated but no rate adjustment had been made. Chief Weinand explained that the rate would increase by what Medicare allowables were and the Village would adjust the rate upward •each year. Chief Weinand explained that he had used conservative figures when anticipating a 3% per year rise. Mayor Mackail questioned why there had been no workshop meetings on this matter to determine if the benefit of this program would outweigh the cost. Chief Weinand responded by explaining that in May 1996 Palm Beach County had passed , a new ordinance changing the length of the CON license from two years to four years, which had made him uncomfortable; however, he had believed that the Village could enter into a contract agreement with the hospital based on assurances from County staff. In August, Chief Weinand had requested that assurance in writing; however, the response received in a letter provided by the County had been basically that the Village could not contract with the hospital . At that point, Chief Weinand had brought the matter before the Public Safety Committee. Chief Weinand stated that he took responsibility for the fact that no workshop meetings had been held. Village Manager Bradford explained that evolution of this whole subject matter began with ALS being provided by the hospital when the Fire Department was started. After a year or two, Tequesta had ceased the contract with the hospital and began ALS non-transport. This was another FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES OCTOBER 30, 1996 PAGE 4 step in that evolution, and would make money for the Village based on the assumptions . Village Manager Bradford commented that Tequesta was the only Fire-Rescue agency in Palm Beach County who did not transport. Mayor Mackail commented that money would be made only because no additional personnel were needed to perform transport services. Village Manager Bradford explained that had also been the conclusion of the hospital board. Chairman Capretta questioned whether the hospital had provided the letter they had promised, to which Village Manager Bradford responded that no letter had been received although at his meeting with the hospital's board he had been assured that they would provide a letter. Chairman Capretta urged that a follow=up be done, since the possibility was slim that Jupiter Hospital would stay independent. Mayor Mackail commented that Columbia hospitals were taking over small hospitals and non-profit organizations throughout the United States . Mayor Mackail expressed his opinion that going into transport would improve response time, and commented that he hoped current staffing levels would be adequate. Mayor Mackail commented that he believed calls from outside the Village would increase, and he believed the Village should capitalize on all opportunities available. Chief Weinand explained that profits were planned to be saved each year to help pay for future equipment. Chairman Capretta commented that facilities would be needed to house the ambulances. Chief Weinand verified that space for ambulances had been included in proposed new public safety facility plans, and pointed out that $21, 050 had been included in FY 1996-97 proposed budget expenditures for building improvements . The following options were under consideration: 1 . Move the generator outside to free a full bay which would provide room for two ambulances; or 2 . Leave the generator in its present FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES OCTOBER 30, 1996 - - . PAGE 5 Location and move decon and the supply area out and widen the #3 bay, which would provide room for two ambulances in the first bay. Mayor Mackail discussed protocol for the ambulance service. Chief Weinand explained that for approximately 60% of the calls only an ambulance and a police car would be needed. On more critical patient calls, the fire truck would also respond. Protocol would be that police would respond first, followed by the ambulance and then the fire truck if needed. Five employees from Fire Rescue would respond, with two in the ambulance and three in the fire truck, or vice versa. Chief Weinand explained that personnel were already trained to ambulance procedures since they had been riding in Jupiter' s ambulances to the hospital . Then a car was sent to the hospital to bring them back. The change to the new procedure would only be a matter of personnel riding in a different vehicle, and turnaround time would be increased to have units back in service because as soon as they were finished at the hospital they would be back in service. Mayor Mackail commented that today the service area for patient transport included the 1200 acres of Tequesta plus Jupiter Inlet Colony, and questioned what the Village was currently doing to increase their service area, particularly in reference to the south side of Jupiter Island and Martin County. Chief Weinand reported that all figures had been based only on the Tequesta/Jupiter Inlet Colony areas, and that currently the Village was working mutual aid with that area and providing backup when called upon. Mayor Mackail expressed his opinion that the Village should consider services from which both Tequesta and Hobe Sound could benefit. Chief Weinand explained that only one ,of the Village fire trucks would remain ALS equipped, which would probably be the pumper. Committeemember Meder suggested that the savings for not rolling fire trucks on 60% of calls could be added to the FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES OCTOBER 30, 1996 PAGE 6 figures. Mayor Mackail questioned where each year' s surplus would be shown. Village Manager Bradford explained that this year the surplus would be used to pay back the Village for fronting startup costs, and after that would go into the General Fund to decrease the upward pressure on the tax rate. Mayor Mackail requested that Section 4 of the draft Ordinance be changed to reflect that a review of fees be held annually at budget time instead of every other year. Committeemember Meder questioned whether the schedule of user fees should be removed from the ordinance and set by resolution. After discussion, Committeemember Meder requested that the wording be changed in Section 5 of the draft ordinance to state fees shall initially be instead of fees shall be; or at the time of adoption of this Ordinance. Councilmember Meder commented that he would like a separate fund maintained for surplus from the ambulance service so that those funds could be used for the ambulance service and it would be easier to sell the value of that service to other communities and other potential service areas. Village Manager Bradford questioned why the Village should even have the ambulance service if the surplus was not going to go into the General Fund to benefit the Village. Mayor Mackail suggested a line item to identify the fund. Chairman Capretta expressed his opinion that some of the surplus should go to the General Fund, however, commented that the Village had a responsibility to the public in the whole Public Safety area, and because of the controversy of the Village pulling away from Palm Beach County the public would want to know if the ambulance service was • profitable. Chairman Capretta reminded the Committee that the Village had intended to periodically publish data showing if the Fire Rescue Department was profitable; and that this was the same concept, so that accounting must be done in such a manner that questions from the public could be answered and that what the Village did with the profits was also clear. Village Manager Bradford verified that Chairman Capretta wished to have the surplus recorded FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES OCTOBER 30, 1996 PAGE 7 and accounted for in a fashion so that -one could always tell whether the decision to establish an independent ambulance service had been correct. Finance Director Kascavelis reported that the present accounting system used by the Village would do what Chairman Capretta requested. Chairman Capretta commented that the Village Administration could charge the Fire Rescue and Police department for services, however, traditionally charges were. only made to departments with revenue such as the Water Department. Chairman Capretta commented that at the last Redevelopment Committee meeting the Village Manager Bradford had been directed to lease space downtown for the Village administrative offices, which was the beginning of implementation of the Village's real estate plan. This move would create an empty space so that a plan was needed which would state that at the beginning of the Village's real estate development program the space formerly occupied by Administration would first be renovated, then the Police Department would move into the space, their prior space would be renovated, a plan would be developed for the Fire Department building, etc. The whole plan must be tracked financially from the first move into the United Bank Building offices to the final move by Administration into new facilities so that the real cost and whether the decisions made had been good could be known. The way that Jupiter operated their town financially was briefly discussed. Mayor Mackail commented that with additional tax dollars generated as Cliveden, Sterling House, and Tequesta Oaks developments were completed, a phase-in approach to facilities was possible, and requested that Finance Director Kascavelis provide a bell curve to demonstrate a break even point. Mayor Mackail commented that could be a tool to help sell new Village facilities to the public, since the average person did not realize how badly facilities were needed. The lease option was discussed. Chief Weinand explained that it was an open end contract held by the same company who currently had the ladder truck. Mayor Mackail suggested that the lease could be bought down quicker based on profits to provide savings. Village Manager FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES OCTOBER 30, 1996 PAGE 8 Bradford explained that -the need for fire trucks and ambulances would always be needed so that he and Chief Weinand had looked for an option which would make the Village completely independent at some point in time, so that cash could eventually be used to purchase rolling stock. From that perspective, Finance Option 3, the option of keeping debt service constant for 25 years, had been considered the best. After Chief Weinand had reviewed the 25-year spreadsheet, Mayor Mackail agreed that Option 3 was the most economical. Committeemember Mayor Mackail made a motion to recommend to the Village Council Finance Option 3 as the financing mechanism to acquire vehicles. Committeemember Meder seconded the motion. Joseph N. Capretta - for Ron T. Mackail - for Michael R. Meder - for The motion was therefore passed and adopted. V. REVIEW OF PROPOSED AMBULANCE SERVICE RATES A) REVIEW OF 1996 AMBULANCE SERVICE FEES B) REVIEW OF PROPOSED FY 1996/1997 TEQUESTA AMBULANCE SERVICE FEE C) REVIEW OF DRAFT ORDINANCE ESTABLISHING AMBULANCE SERVICE FEES The possibility of making the ambulance service rate $300 instead of $310 as proposed by Chief Weinand was discussed. Chief Weinand explained that $300 was the current charge by Palm Beach County, and that $300 would be feasible since it was above the amount Medicare would pay, and since the Committee had agreed to review fees annually. After discussion, it was decided to leave the rate at $310 as originally proposed. Committeemember Mayor Mackail made a motion to accept the proposed rate of $310 fee per call plus $6 mileage. FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES OCTOBER 30, 1996. PAGE 9 Comitteemember Meder seconded the motion. Joseph N. Capretta - for Ron T. Mackail - for Michael R. Meder - for The motion was therefore passed and adopted V. ANY OTHER MATTERS Village Manager Bradford reported that Jupiter's objection to the reverse osmosis discharge permit had been rejected. They had been given an opportunity by the administrative judge to amend their petition, but failed to submit an amendment; therefore the permit was granted. Village Manager Bradford commented that Jupiter had recently hired an expensive law firm from Miami, and the attorney had advised Attorney Scott Hawkins that Jupiter had instructed him to look into suing Tequesta over the fact that Tequesta building a reverse osmosis plant was an indication that Tequesta was trying not to buy water from Jupiter. Village Manager Bradford reminded the Committeemembers that letters written from Mayor Mackail to Mayor Golonka had clearly indicated the future plans of the Village, so that Jupiter could not claim that they had not known the Village' s plans. Chairman Capretta stated that it was apparent to him that Jupiter had a legal strategy since they attacked the Village legally every time the Village did something and seemed to be willing to spend unlimited funds to attack the Village, Palm Beach County, Martin County, and even the State. Chairman Capretta questioned the Village' s legal strategy, commenting that each •item was discussed separately and not as a total picture. Chairman Capretta recommended a closed door session with the Village Attorney to look at all the current and future cases and decide upon a strategy. Chairman Capretta commented that the Village was only a small part of the business of Attorney Randolph's firm, while Jupiter had full- time legal services, which the Village could not afford. The other Committeemembers expressed their desire for a closed FINANCE AND ADMINISTRATION COMMITTEE MEETING MINUTES OCTOBER 30, 1996 PAGE 10 "' door session on this matter. Village Manager Bradford advised that a closed door session could legally be called to discuss legal strategy. Committeemember Meder suggested that the closed door session be scheduled for a half day rather than just an hour. After further discussion; Village Manager • Bradford stated that a closed door session would be scheduled. VII . ADJOURNMENT Committeemember Mayor Mackail made a motion to adjourn the meeting. Committeemember Meder seconded the motion. The vote on the motion was: • Joseph N. Capretta - for Ron T. Mackail - for Michael R. Meder - for The motion was therefore passed and adopted and the meeting was adjourned at 9:42 A.M. • • Respectfully submitted, ZIA ,tea) etty L1.ur ATTEST: Recording Secretary Joann Manganiello Village Clerk DATE APPROVED: rt_